New York, March 25, 2026, 12:23 EDT
Microsoft stock trailed behind the tech rally on Wednesday, hovering around $370 just after noon in New York. That’s after Tuesday’s finish marked an 11-month low. By midday, shares slipped roughly 0.7%, while the Nasdaq Composite was up 0.76%.
It’s an odd moment for this move. Microsoft just signed on to lease a massive 700-megawatt data-center project out in Abilene, Texas—a site once set aside for Oracle and OpenAI, according to Reuters on Tuesday. The company keeps pressing forward with large-scale AI infrastructure.
This isn’t the first sign of strain. Back in January, Reuters reported that Microsoft shares slipped when the tech giant announced record AI outlays alongside cloud growth figures that left certain investors underwhelmed. Microsoft’s Azure business posted a 39% increase in the fiscal second quarter.
New analyst notes aren’t offering relief. This week, Melius’s Ben Reitzes dropped his price target on the stock to $400 from $430, warning that Microsoft’s Copilot AI assistant shakeup “doesn’t seem like it was into strength.” Investing.com UK
UBS wasn’t as downbeat, though it reduced its target as well. Analyst Karl Keirstead maintained his Buy call on Wednesday, lowering the price target to $510 from the previous $600.
Another obstacle isn’t something you’ll find in a spreadsheet. President Brad Smith, speaking Tuesday, pointed out that data-center builders now face the challenge of “winning over the local community and sustaining their trust.” Towns and counties are increasingly resisting, worried about the electricity demand, water consumption, and pollution these projects bring. Reuters
The move was especially notable compared with other AI-related stocks. Nvidia added roughly 2.2%, Amazon rose 1.7%, but Microsoft slipped about 0.6% according to MarketScreener.
Patience might make sense here, but the risks aren’t easy to ignore. Back in February, Reuters noted that software stocks shed roughly $1 trillion in value over just one week, as investors tried to gauge the potential shake-up from AI. This week, William Blair’s Jason Ader flagged that “AI has introduced a level of uncertainty” that won’t be going away any time soon—though his team still counts Microsoft among the expected winners from AI. Reuters
